Planning Ahead - Long Term Care
As things currently stand your local authority is responsible for arranging most care services in your area. As you may know, this is a means tested provision and your income and assets will normally be taken into account. These will include all of your pensions including the state pension, personal savings, shares and any other investments. Even your home can be taken into account.
The local authority will only provide help towards the costs of residential nursing care if your income or assets fall below a certain level set by the Government.
The current legislation is under review at the moment and there is a great deal of debate. However, it is currently complex and whilst a number of schemes operate in the realms of wealth preservation it is important that you take independent legal advice when entering into such plans.
Care Costs
Of course some people can afford to pay their own care costs. However, with fees amounting to £30,000 per year for some full time nursing care it is not only prohibitive for some but certainly a drain on resources, even for those with substantial savings.
People are now looking to long term care plans to help them meet the cost of care.
These plans vary from regular premium pure insurance type products to one off single premium products which combine inheritance tax planning and protection of capital. The choice of which type of product is most suitable depends on an individual's own circumstances and professional independent financial advice should be sought.
Your home is certainly one of your major assets, as well as the place where you live and in many cases have grown up with your family. If you are intending to pass your home on to members of your family then long term care is certainly a topic you will have to consider.
Who Would Look After You
Being looked after by relatives can place a tremendous emotional strain on the people you love. Even those who are willing to help parents or elderly relatives through this period need some kind of financial support or relief. Long term care does not necessarily mean moving into a home, but can mean providing additional nursing care to supplement that provided by your family.
Lasting Powers of Attorney
These documents, which have replaced Enduring Powers of Attorney, enable you to choose an attorney(s) to act on your behalf in the event of incapacity when it would be necessary for someone to look after your assets. In the absence of a Lasting Power of Attorney, it would be necessary to involve the Court of Protection in the administration of your affairs.
You have great flexibility in whom you can appoint as attorney and can appoint additional attorney(s) if the person you originally appoint is unable to act.
